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SDAHO Study: Medicaid Expansion Worth $1.383 Billion, 29,500 Jobs

Before the 2014 Legislative session, the South Dakota Association of Healthcare Organizations had two University of Nebraska–Kearney profs study the potential impacts of Medicaid expansion in South Dakota. Today the South Dakota Budget and Policy Project finally posted that December 15, 2013 study online.

Professors Allan Jenkins and Ron Konecny estimate it would cost South Dakota $157 million over ten years to expand Medicaid under the terms of the Affordable Care Act. In return, Jenkins and Konecny estimate South Dakota would receive the following direct economic benefits:

Jenkins & Konecny, SDAHO, 2013.12.15, p. iv
Jenkins & Konecny, SDAHO, 2013.12.15, p. iv

For every dollar we'd spend expanding Medicaid, we'd get $9.81 back. Our state economy would net $1.383 billion.

Someone, anyone, tell me why we say no to $1.383 billion.

Plus we help sick and injured neighbors get well.

Jenkins and Konecny calculate that for every $100 million of federal funds injected into our economy, we get 2,131 jobs, $75 million more in labor income, and $5.7 million more in local tax revenue. Multiply all of that by 14. 29,500 jobs. Holy cow: Mike Rounds brags about creating more than 28,000 jobs during his eight years as Governor through all of his policies combined. Dennis Daugaard could beat that job number with one policy decision that costs South Dakota pennies on the dollar. Dennis Daugaard could be a job-creating hero.

Plus we help sick and injured neighbors get well.

Jenkins and Konecny note that the Affordable Care Act funds the Medicaid expansion in part via "the national reduction in Medicare reimbursement for healthcare providers." South Dakota doctors already eat that cut, regardless of what we do on Medicaid. As Larry Pressler said yesterday, the ACA is not going away. Therefore, it only makes economic sense to recoup some of those reductions by expanding Medicaid.

Plus we help sick and injured neighbors get well.

Read the report. Look at the experience of North Dakota and other states expanding Medicaid under the Affordable Care Act. Then tell me why you vote for anyone other than Rick Weiland, Joe Lowe, and Democrats who recognize that the Affordable Care Act is good policy that's good for our economy... and helps sick and injured neighbors get well.


  1. Steve Sibson 2014.05.16

    "Someone, anyone, tell me why we say no to $1.383 billion."

    Because it is a bogus conspiracy theory.

  2. Jerry 2014.05.16

    Some middle of the road. There you go again Mr. Sibson, arguing against economic facts. I am sure the rest of the tea party salutes you for being so obtuse. Good show.

  3. lesliengland 2014.05.16

    cause you couldn't stop it in the senate, the house, or scotus, at the ballot boxes, cause kochs say so, and because you cannot adapt to the cultural, demographic and physical changes of a world 70 years past the fifties. forgive me if you are a millenial or an x gen. (god save us from this young form of republican)!

  4. Bill Fleming 2014.05.16

    Looks like Sibby fell off the wagon again. Sigh.

  5. Steve Sibson 2014.05.16

    Bill, how things been going for you?

  6. mike from iowa 2014.05.16

    Who let the Howard Cosell doll in? The kind that even if you don't wind it up,it still talks.

  7. John Tsitrian 2014.05.16

    I wonder the organization had to turn to the University of Nebraska for a study like this. Does the University of South Dakota have an Economics Department capable of coming with some numbers regarding an issue like this? If you're reading this, Mr. Newquist, I'd like to see your take.

  8. Steve Sibson 2014.05.16

    From the study:

    "The primary cost of expansion is the increased state spending on newly eligible Medicaid enrollees after the 100% federal coverage ends in 2017."

    So if the study's cost/benefit analysis excludes the federal government's portion of the cost, then the analysis is worthless.

  9. Rhino Lynn 2014.05.16

    John Tsitrian

    I would think Northern State University's School of Business Economics Department would of been able to come up with regarding this.

  10. Rhino Lynn 2014.05.16

    Numbers* regarding this

  11. Bill Fleming 2014.05.16

    Rabbit-hole free for at least a year now, Sibby.

    And I ain't goin' back down, baby.


  12. Douglas Wiken 2014.05.16

    Sibby, what is a "bogus conspiracy"? Do they go bump in the night?

  13. grudznick 2014.05.16

    Mr. Wiken, I think most of the Hubbel-Sibby conspiracies are bogus. So are some of yours.

  14. grudznick 2014.05.16

    Indeed I do, young Mr. Wiken. You may call me Nick if you prefer, like my ma did and her grandma before her.

  15. Stan Gibilisco 2014.05.16

    Don't a lot of doctors refuse to see Medicaid patients? Not enough money, or something? What good is coverage if you can't find a doctor who'll see you? Or is that another "wrong story"that I've heard?

  16. Jerry 2014.05.16

    Another wrong story you have heard Stan. Doctors know they will get paid through the state Medicaid program and you betcha they will take you.

  17. Deb Geelsdottir 2014.05.16

    I think there are docs who refuse Medicare because the reimbursement rates are lower than they get from some insurance plans and individuals. I also think that scenario is more likely in elective specialties.

    Correct? Anyone?

  18. Roger Cornelius 2014.05.16

    From my experience, I have known doctors that don't take Medicaid because of a lower reimbursement rate and the length of time to receive payment.
    At the same time I've known doctors that base their practice on Medicaid, particularly specialist.
    When I was on the board of Community Health Center of the Black Hills a local pediatrician attempted to sue us because we were taking away all "his" Medicaid patients.
    Dental services are extremely difficult to obtain, most Dentist won't accept Medicaid patients because of low reimbursement rate. In a humanitarian effort, some dentists will accept a limited number of Medicaid users in each quarter of the year.

  19. Jerry 2014.05.17

    Thanks Roger. What you are telling me, through your experience, is even further reason for healthcare reform. If doctors get reimbursement for seeing Medicaid patients and it is lower than they can gouge you for personally or through your insurance company, then that is kind of corrupt and you the policy holder have to pay higher premiums for your health insurance to satisfy the greed of the providers.

    If this is the case, there should be a listing of those providers that do not take Medicaid posted as to why that is. Then the state should have to answer why the reimbursement is not in line with the coding for that service. This should be public information. Again, this is why their is a need for healthcare reform and Medicare for all so that all reimbursements are equal.

  20. Jerry 2014.05.17

    Medicare and Medicaid are two different programs Deb. I knew that about Medicare and reimbursements, but Roger speaks of Medicaid and that I did not know about that.

  21. Roger Cornelius 2014.05.17

    As ACA expands and becomes more acceptable, even by Republicans that hate, we will be moving further away from everyone being able to pay into Medicaid. Regardless of what politicians say, they will not work to implement Medicare for all and a single payer system is in the rear view mirror.
    I should have added in my previous post about Medicare and Medicaid reimbursements that they vary from region to region. A doctor in South Dakota can perform the same medical procedure as a doctor in New York and the reimbursement will be considerably lower for the South Dakota doctor.

  22. Lanny V Stricherz 2014.05.17

    Did Jerry just find the heart of the entire healthcare debate?

    " Again, this is why their is a need for healthcare reform and Medicare for all so that all reimbursements are equal."

    I would venture a guess that any doctor who goes strictly by what the healthcare he or she renders pays for that service, is breaking his or her hippocratic oath.

  23. Deb Geelsdottir 2014.05.17

    Thanks for the reminder Jerry. I know they are separate, but I got myself confused. It's not all that difficult a thing to do.

Comments are closed.